Market concentration
How much market behaviour is explained by a common factor?
Cross-market intelligence
LB Analyst
in development
Understand the risks shared by your exposures.
LB Analyst is being built as a professional cross-market intelligence dashboard, bringing concentration, market relationships and shock transmission into the context of portfolio risk.
Explore the measuresIt is not yet available for purchase or account registration. The public research remains available to read.
The risks behind your exposures
The measures in development focus on four questions about portfolio risk.
Connectedness
How closely are markets linked, and how do those relationships change?
Shock transmission
Where might shocks travel, and how does the starting structure affect their propagation?
Diversification weakness
Where are apparently separate exposures becoming more dependent on shared behaviour?
What LB Analyst
will bring together
Market structure, transmission and portfolio context, considered together.
Cross-market structure
See when markets are behaving independently and when common forces begin to dominate. Put changes in relationships into context and distinguish breadth of holdings from breadth of underlying exposures.
Transmission
Examine where shocks may travel and which markets may transmit or receive them. Consider how existing structure can shape the direction of stress.
Portfolio context
Bring concentration, dependence and downside behaviour into the same investment discussion. Identify where apparently separate exposures may rely on the same underlying conditions.
Validation before inclusion
Proprietary measures of synchronisation, connectedness and transmission are being developed and validated. Further measures will be considered only after validation.
The public research sets out the supporting methods, results and limitations.